Taylor Wimpey has today given the strongest indication yet that it may look to sell its Taylor Woodrow construction arm.
In a market update this morning the firm said that it would be carrying out a strategic review of its construction business as one of a series of actions aimed at putting the firm on a more healthy footing.
There has been significant speculation about the potential sale of the Taylor Woodrow construction business ever since the formation of Taylor Wimpey from the merger of Taylor Woodrow and rival house builder George Wimpey last year.
While its parent company has been struggling, the construction side of the business has been thriving in recent months with City sources suggesting it could command a price of between £80 and £100 million if it was put up for sale.
Other moves planned by the firm include increasing the level of affordable housing on its projects to stimulate sales, altering the mix of housing types on its sites to improve returns, lobbying the Government to reduce the impact of regulation on the business and looking to create partnerships to move into the rental market.
The move comes as the firm’s shares lost half their value falling below 30p on the back of a grisly trading update this morning.
It revealed it had failed to reach a deal with investors over a funding rescue package for the business and that it would be laying off 900 staff - 300 more than expected - and closing 13 of its 39 regional offices.
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